Adyen (ADYEY) AI Stock Analysis

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Adyen

(OTC:ADYEY)

Rating:69Neutral

Price Target:―

Adyen's overall stock score reflects strong financial performance and growth potential, balanced against its high valuation and mixed technical signals. The lack of recent earnings call insights adds some uncertainty. While the company's fundamentals are solid, the stock is priced for significant future growth, presenting both opportunities and risks.

Adyen (ADYEY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$51.20B

Dividend YieldN/A

Average Volume (3M)41.45K

Price to Earnings (P/E)47.0

Beta (1Y)1.45

Revenue Growth19.41%

EPS Growth20.23%

CountryUS

Employees4,345

SectorTechnology

Sector Strength84

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.18

Shares Outstanding3,150,814,700

10 Day Avg. Volume35,274

30 Day Avg. Volume41,445

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.85

Enterprise Value/Revenue19.48

Enterprise Value/Gross Profit21.81

Enterprise Value/Ebitda31.93

Forecast

1Y Price Target

$20.30

Price Target Upside24.77% Upside

Rating ConsensusHold

Number of Analyst Covering1

Adyen Business Overview & Revenue Model

Company DescriptionAdyen N.V. operates a payments platform in Europe, the Middle East, Africa, North America, the Asia Pacific, Latin America. The company's platform integrates payments stack that include gateway, risk management, processing, issuing, acquiring, and settlement services. It offers a back-end infrastructure for authorizing payments across merchants' sales channels, as well as online, mobile, in-store, and APIs; and data insights. The company's platform services a range of merchants across various verticals, connecting them directly to Visa, Mastercard, and other payment methods. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes MoneyAdyen makes money primarily through transaction fees charged to merchants for processing payments across various channels. The company offers competitive pricing models, including a fixed fee and a percentage of the transaction value. In addition to transaction fees, Adyen generates revenue from value-added services such as fraud prevention, data analytics, and subscription-based access to its platform. Key partnerships with global enterprises and financial institutions bolster its earnings by expanding its reach and integrating its services into broader business ecosystems. As a result, Adyen's revenue streams are diversified across different industries and geographies, contributing to its financial stability and growth.

Adyen Earnings Call Summary

Earnings Call Date:Aug 14, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Feb 11, 2026

Earnings Call Sentiment Positive

The earnings call reflects a positive outlook with strong revenue and EBITDA growth, driven by Unified Commerce and Platforms segments. However, challenges such as currency impacts and tariff issues in APAC affect certain growth projections.

Q2-2025 Updates

Positive Updates

Strong Net Revenue Growth

Net revenues grew to EUR 1.1 billion, showing a 21% growth on a constant currency basis.

EBITDA Growth and Margin Expansion

EBITDA grew 28% with margins reaching 50%, demonstrating operating leverage.

Unified Commerce Expansion

Unified Commerce grew net revenues by 31%, driven by retail, food & beverage, hospitality, and entertainment verticals.

Platforms Segment Growth

Platforms experienced a 55% growth, with 32 platforms processing over EUR 1 billion annually.

Successful Product Innovation

Products like Intelligent Payment Routing and Adyen Uplift have seen high adoption and success.

Negative Updates

Impact of Currency Fluctuations

Strong euro and weak dollar impacted results, particularly affecting APAC merchants trading into the U.S.

Growth Challenges in Customer Base

The growth of the customer base was lower than expected, particularly affecting the market volume growth.

APAC to U.S. Tariff Impact

A subset of APAC merchants selling into the U.S. affected growth, leading to a 2% reduction in expected revenue growth.

Company Guidance

In the H1 2025 earnings call, Adyen provided insights into its financial performance and strategic priorities. The company reported net revenue growth of around EUR 1.1 billion, reflecting a 21% increase on a constant currency basis, with EMEA noted as the fastest-growing region at 21%. Despite macroeconomic challenges, such as the strong euro impacting merchants in APAC trading into the U.S., Adyen maintained an EBITDA growth of 28%, achieving a 50% EBITDA margin. The call highlighted Adyen's focus on increasing the share of wallet with existing customers, winning new customer logos, and investing in innovation. Significant product developments, like Intelligent Payment Routing and Adyen Uplift, have been well-received, with Uplift's Protect module being adopted by two-thirds of new customers in the first half. Looking ahead, Adyen expects similar growth in the second half, driven by expanding share of wallet and new customer wins, despite some ongoing impacts from tariffs and macroeconomic conditions.

Adyen Financial Statement Overview

Summary

Adyen's financial performance is robust, with strong income growth and profitability. Revenue increased by 82% from 2019 to 2023, and profit margins are high. The balance sheet is stable with low leverage, and cash flow generation is efficient, supporting further growth.

Income Statement

Very Positive

Adyen has demonstrated strong revenue growth, with a revenue increase of 82% from 2019 to 2023. The gross profit margin is robust, improving from 18.7% in 2019 to 61.9% in 2023. Net profit margins have also strengthened, indicating high profitability. EBIT and EBITDA margins are solid, at 61.2% and 63.5% respectively in 2023. Overall, Adyen's income statement reflects a trajectory of strong growth and profitability.

Balance Sheet

Positive

Adyen maintains a strong balance sheet with an impressive equity ratio of 32.9% in 2023, showing sound financial stability. The company has low leverage, with a debt-to-equity ratio of 0.07, indicating minimal reliance on debt. Return on equity is strong at 22.2%, showcasing effective use of shareholder funds. Adyen's balance sheet is characterized by stability and low financial risk.

Cash Flow

Positive

Adyen's cash flow statement shows healthy cash generation, with a consistent increase in free cash flow, growing by 81% from 2019 to 2023. The operating cash flow to net income ratio of 2.68 in 2023 suggests efficient cash earnings relative to accounting profit. The free cash flow to net income ratio is also robust at 2.58, indicating strong cash profitability. Overall, Adyen's cash flow is stable and supportive of its operational needs.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	2.23B	1.86B	1.33B	1.00B	684.20M	534.30M
Gross Profit	1.99B	1.63B	948.92M	759.80M	503.63M	411.33M
EBITDA	1.36B	1.03B	755.81M	653.29M	414.33M	325.11M
Net Income	925.16M	698.32M	564.14M	469.72M	261.02M	204.04M
Balance Sheet
Total Assets	11.43B	9.57B	7.62B	5.78B	4.16B	2.61B
Cash, Cash Equivalents and Short-Term Investments	9.88B	8.31B	6.52B	4.62B	2.75B	1.76B
Total Debt	228.26M	223.06M	203.07M	142.96M	131.49M	61.69M
Total Liabilities	7.19B	6.42B	5.20B	3.97B	2.94B	1.69B
Stockholders Equity	4.23B	3.15B	2.41B	1.81B	1.22B	918.33M
Cash Flow
Free Cash Flow	1.60B	1.80B	1.93B	1.77B	999.55M	514.27M
Operating Cash Flow	1.70B	1.87B	2.02B	1.82B	1.02B	529.46M
Investing Cash Flow	-118.62M	-69.74M	-87.69M	-42.13M	-22.16M	-22.76M
Financing Cash Flow	70.60M	-20.61M	-12.22M	96.24M	3.39M	9.36M

Adyen Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.27

Price Trends

50DMA

17.41

Negative

100DMA

17.68

Negative

200DMA

16.76

Negative

Market Momentum

MACD

-0.33

Positive

RSI

41.00

Neutral

STOCH

12.42

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADYEY, the sentiment is Negative. The current price of 16.27 is below the 20-day moving average (MA) of 16.75, below the 50-day MA of 17.41, and below the 200-day MA of 16.76, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADYEY.

Adyen Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	75 Outperform	$2.40B	25.26	13.86%	―	13.02%	-2.57%
TOST	73 Outperform	$23.97B	120.21	14.51%	―	26.11%	―
XYZ	73 Outperform	$45.68B	16.03	14.27%	―	1.41%	262.31%
AFRM	70 Outperform	$29.20B	681.89	1.80%	―	38.80%	―
NET	70 Neutral	$73.17B	―	-11.04%	―	27.32%	-11.94%
ADYEY	69 Neutral	$51.20B	47.04	23.25%	―	19.41%	20.23%
Sector *	61 Neutral	$35.55B	8.88	-11.05%	1.87%	8.55%	-8.14%

* Technology Sector Average

Performance Comparison

ADYEY

Adyen

16.27

1.89

13.14%

XYZ

Block

74.94

13.63

22.23%

NET

Cloudflare

214.43

138.19

181.26%

PAYO

Payoneer

6.65

-0.49

-6.86%

AFRM

Affirm Holdings

87.35

49.18

128.84%

TOST

Toast Inc

41.22

17.60

74.51%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 02, 2025